S. African manufacturing contracts amid weak demand

South African manufacturing activity contracted in June, with the PMI survey showing a reading of 45.7, up from 43.8 in May, but still below the growth threshold of 50.

Absa Bank, the survey sponsor, cited weak demand and uncertainty about the new government following the May 29 election as reasons for the decline.

President Ramaphosa’s recent cabinet announcement, which included new coalition partners like the Democratic Alliance, may have also contributed to a Wait-and-See approach delaying orders.

Attribution: Reuter citing data.